Archive · 25 Jul 2025
UK Expects Auto Parts Exports to India Surge with New FTA
The UK and India have made a trade deal!
This means it will be easier for companies to sell auto parts between them.
The UK thinks they can sell a lot of auto parts and engines to India, even more than they sell luxury cars.
This deal reduces the taxes on auto parts.
Some Indian companies are likely to sell more parts to the UK too.
It's like they're making it easier for each other to buy and sell car parts.
India also hopes this trade deal will help their economy grow by supporting their car parts industry.
The UK anticipates auto parts and engine exports to India to reach $240 million after the free-trade agreement (FTA), surpassing luxury cars.
The FTA opens the Indian market for UK companies like GKN Automotive and Cosworth, while also reducing tariffs on auto parts.
Most UK auto parts imported into India will see a gradual duty reduction from 16% to 0% over 10 years.
India exported approximately $191.6 million in auto parts to the UK, and imports were $138.6 million.
The agreement aligns with India's 'Make in India' vision, potentially strengthening its role in global supply chains.
- Who
- The UK government, Indian and UK auto component manufacturers, and consumers.
- What
- The UK and India have a new free trade agreement (FTA) focusing on auto parts and engines.
- When
- Tariff reductions will happen gradually over 10 years.
- Where
- Between the UK and India.
- Why
- To boost trade, create opportunities, and strengthen supply chains.
UK Perspective
Indian Perspective
Industry Impact Assessment
UK Perspective
Anticipates increased exports of auto parts.
Indian Perspective
Indian auto component industry sees no significant challenges from FTA.
- UK Auto Parts Export Forecast
- $240 million
- Tariff Reduction Timeline
- 10 years
- Indian Auto Parts Exports to UK
- $191.6 million (approx.)
- Indian Auto Parts Imports from UK
- $138.6 million (approx.)
- Indian Auto Component Industry
- $111 billion